Dracca 2

Dracca conducts extensive product-safety testing on all  of its products before bringing them to market. In fact, Dracca has developed  an in-depth approach to safety operations unlike any other in the industry. In  a recent study, there was a small indication that Dracca’s newest stroller,  SmoothGlide, had the potential to pinch small fingers during the fold-down  process. Dracca executives approved the design anyway, and SmoothGlide was sold  to retailers in mass quantities. Initial  market response to the SmoothGlide was positive, and many competitors eyed the  unique features of the SmoothGlide wheels.

            A Dracca employee, Lloyd London, leaked the findings of  the safety study to the public and a consumer watchdog group. In a press  conference called by London himself, London explained the SmoothGlide safety  testing process in detail. Dracca employed London as director of operations for  stroller manufacturing, and his contract contained a confidentiality provision  that was verbally agreed to as an addition to London’s written employment  contract. London is in his third year of a five-year employment contract.

            Based on the information obtained by London, the consumer  watchdog group known as Hands for Babies sued Dracca, claiming negligence in  safety testing.

            In light of these facts, please respond to the following  questions using course material and credible outside research to support your  findings. Please submit findings in a three- to five-page paper, using APA  format.

• Can Dracca hold London responsible for  misappropriation of a trade secret? Why or why not? Use legal principles discussed in the  readings to support your conclusion.
• Is the confidentiality provision within  London’s employment contract valid pursuant to the Statute of Frauds? Why or  why not?
• Based on the elements required for a claim of  negligence, will Hands for Babies be successful in its suit against Dracca? Why  or why not?
• In light of product liability concerns, what  are the considerations Dracca should take regarding whether to issue a  voluntary recall of the SmoothGlide? Use specific information from the readings  on product liability topics to support your recommendations.
• What steps should Dracca take to protect the  design of SmoothGlide from competitors?
• What actions (internal and external) do you  recommend to Dracca to remedy the ethical and legal considerations of this  scenario? Be specific and detailed, and be sure to base recommendations on  relevant legal and ethical principles.

Name your document:  SU_MBA5005_W2_A3_LastName_FirstInitial.doc.

Submit your 3- to 5-page Microsoft Word document